Cities and states typically grant large subsidies for new venues that host professional sports teams. These subsidies come in the form of tax-exempt bonds, which are typically repaid over many years using levies, such as sales or hotel taxes. Investors who purchase these bonds do not pay taxes on their income, which allows for cheaper interest rates and lower costs on projects. Are these bonds mutually beneficial to both team owners, who advocate for the venues, and localities to justify granting bonds to build the venues? - Read more...